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Cherry industry statistics from 2004
Summary
The cherry industry, within the AlpValleys region is particularly
concentrated in Wangaratta Rural City, where over 92 per cent of
GVP of approximately $4.5 million is derived. The majority of the
cherry growers are situated in the Warby Range and Taminick areas.
The outlook for the industry is good with production to rise quickly
as young trees planted during the last five years begin to produce
fruit. On average, growth has been around 40% between census periods
and is expected to be similar in 2004-2005.
Completion of the Boweya water pipeline project is expected to result
in a production increase of approximately 600 tonnes.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
Gross value of production |
$2,174,068 |
$4,486,495 |
Current production volume (kg) |
523,998 |
726,817 |
Total number of trees |
40,735 |
65,542 |
Contribution to Victorian GVP
of commodity |
26.1% |
25.5% |
Contribution to Australian
GVP of commodity |
7.5% |
7.5% |
Estimated number of farms |
21 |
21 |
Source: ABS Agricultural Census 1997 and 2001
Cherry industry overview
Detail |
Comments |
Product description |
Fruit for the fresh fruit market. |
Main season |
November and December. |
Industry associations |
Victorian Cherry Association, Alpine Valleys
Summer Fruit Growers |
Domestic market information |
Approximate price per tonne of cherries is
$7,500 which is sold predominantly to the major supermarket
chains. The cherry industry is based on demand through the
domestic market with cherry exports accounting for 10 per cent
of production. |
Export market information |
The demand for cherries is much greater than
supply in the export markets. Main export markets include Hong
Kong, Singapore and Taiwan. |
Source: AAVAF Survey 2004
Location of the cherry industry within North East Victoria
2001 Ag Census |
%
of GVP |
%
of production volume |
%
of farms for commodity |
North East Region |
Victoria |
North East Region |
Victoria |
North East Region |
Victoria |
Indigo Shire |
7.6% |
1.9% |
7.6% |
1.9% |
20.64% |
0.82% |
Wangaratta (RC) |
92.4% |
23.5% |
92.4% |
23.5% |
61% |
10.38% |
Source: ABS Agricultural Census – 2001
The census has not recorded cherry growers which are known to occur
in Benalla Rural City
Projected industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey
data |
Growth in production volume 1997 to 2001 |
Production grew by 39% or 200,000 tonnes between
the 1997 and 2001 census periods. |
Surveys |
Current profitability |
Was stated as either high or satisfactory. |
5 year business plans |
Are optimistic with cherry farmers surveyed
planning to increase production by between 100% and 150%. |
5 year business outlook |
Was described as good. |
Business planning / budgeting |
Surveyed cherry farmers conduct formal business
plans / budgets for the long term - 5 years plus. |
Age of producers |
Fell within the 50 to 59 year age bracket. |
Capital expenditure 2002-03 financial year |
Not stated. |
The North East regions volatile spring weather has over past years
plagued the industry, often sending prices on a significant price
spiral. Cooler seasonal October temperatures have at times delayed
cherry picking by up to a month and severe frosts in September have
wiped out trees.
New cherry varieties are being selected which are a larger size
(greater than 25 mm in diameter), have resistance to rain-induced
cracking, and are self-fertilising. Self-fertilising varieties will
be more consistent in respect of cropping from season to season.
The market is demanding a more consistent grade of fruit and the
introduction of new varieties is seen as being able to provide consistency
of production. Trials and research into select varieties that extend
the current harvest season either later or earlier will also help
meet fruit demand.
The completion of an 11km pipeline, enabling the Boweya cherry
orchard, on Wandin Valley Farm, to access 50 mega litres of water
each month for production is a major initiative in commitment to
growing in the region. Significant new plantings have resulted.
Cherry industry labour requirements
Detail |
Comments |
Estimate of labour employed
directly:- (based on 2 survey responses) |
Full time |
6 |
Part time |
1 |
Casual |
195 |
Areas of indirect employment |
Brokers / buyers (major supermarkets), suppliers,
transport service providers. |
Labour market issues |
Large numbers of casual labour is a major requirement
of producers for between November and December. Some farmers
stated difficulty in finding casual labour, despite the low
skills required of labourers. |
Cherry industry marketing activities
Detail |
Comments |
Marketing undertaken |
Regional growers sell direct from the farm
gate, and through the Melbourne, Sydney and Brisbane wholesale
markets, and direct to retail outlets. Wandin Valley Farms,
near Wangaratta, supplies Coles supermarkets. |
Value adding activities |
Some minor value adding through cherry wine
productions, and drying. Predominately improvement in product. |
Labels and brands |
Cherrybrook Cherry Farm, Wandin Valley Farms,
Hotson’s Cherries. |
Cherry industry strategic advantages and opportunities
-
The area around the Warby Ranges is ideal for growing, as cherries
require non-waterlogged soils and a period of winter chilling for
the fruit to set.
-
The industry maintains a competitive advantage in export and
domestic markets through superior varieties. The development of
improved rootstocks and new cherry varieties should provide opportunity
for increased returns to regional cherry growers based on current
markets.
-
Cherries have potential for greater development in the region
if the crop can establish a late season production advantage both
within Australia and overseas.
-
Access to infrastructure for transport to market.
- Wandin Valley
Farms is one of the top five producers in Australia.
Cherry industry strategic disadvantages and impediments to growth
-
Growers find cherries a difficult crop to grow as they are extremely
vulnerable to the vagaries of nature and are prone to many pests.
-
Cherries are a capital-intensive industry with establishment
costs per hectare varying from $40,000 to $60,000 including trees,
irrigation, land preparation and machinery. Additional costs include
bird-proof netting, rain-protective covers, and packing sheds with
grading and cool room facilities.
-
The availability of seasonal labour for harvesting is becoming
an issue and will become more urgent as production levels increase.
A shortage of casual labour at picking time being the most significant
impediment to growth.
-
Food safety and quality assurance guarantees are increasingly
important to the market, especially European markets. Assurances
that fruit have been produced in an environmentally sustainable
manner as well as incorporating worker health and safety and waste
control.
-
Water storage and availability will remain a problem for smaller
growers.
-
Access to productive agricultural land for future production
of all stone fruits.
-
Vulnerability to fruit fly outbreaks in neighbouring centres
eg. Wangaratta.
-
Access to US markets has been limited for
export, however US cherries from California and Washington are
imported between May – August.
-
Other exports eg. China and Taiwan may open up, but currently
tight on quarantine requirements
-
Export markets require consistency in product supply with a
strong domestic market considered a weakness to export development.
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